Having recently declared its inaugural dividend of seven cents per share, Amãna Bank continued to showcase strong performance in terms of profitability, as it closed the first six months of 2018 by recording a Profit Before Tax of over Rs 400 million, which almost doubled from Rs 210.8 million recorded in the first six months of 2017.
Similarly, the Bank recorded a profit after tax of Rs 288.2 million against Rs 151.7 million recorded in the corresponding period of 2017, reflecting an impressive YoY growth of 90%. Whilst the bottom line performance has been noteworthy, EPS remained at 12 cents per share, purely due to the number of shares doubling, subsequent to the successful Rights Issue in Q3 2017.
The Bank’s focus to further expand its core banking activities yielded positive results, with the Bank recording a 27.1% YoY growth in Financing Income which grew to Rs 3.20 billion from Rs 2.52 billion, whilst Net Financing Income grew to Rs 1.58 billion from Rs 1.19 billion reflecting a 32.4% YoY growth. This assisted the Bank’s Financing Margin to record a healthy 4.4% compared to 4.2% at end 2017. During the period, the Bank’s Net Fee and Commission income reported a significant YoY growth of 31.8%. After providing for impairment on financing and accounting for an increase in operating expenses of 8.2%, the Bank was able to record a significant 70.8% growth in operating profit before VAT on Financial Services and NBT to close the first half at Rs 620.8 million. Commenting on its first half performance, the Bank’s Chief Executive Officer Mohamed Azmeer said “It is encouraging to see the traction the Bank has achieved during the last six month, resulting in sustained profitability for the Bank. Having commenced reciprocating our shareholders with the inaugural dividend, we are confident that this performance will lead us to greater success in line with our 5 year strategic plan.”
Similarly, the Bank recorded a profit after tax of Rs 288.2 million against Rs 151.7 million recorded in the corresponding period of 2017, reflecting an impressive YoY growth of 90%. Whilst the bottom line performance has been noteworthy, EPS remained at 12 cents per share, purely due to the number of shares doubling, subsequent to the successful Rights Issue in Q3 2017.
The Bank’s focus to further expand its core banking activities yielded positive results, with the Bank recording a 27.1% YoY growth in Financing Income which grew to Rs 3.20 billion from Rs 2.52 billion, whilst Net Financing Income grew to Rs 1.58 billion from Rs 1.19 billion reflecting a 32.4% YoY growth. This assisted the Bank’s Financing Margin to record a healthy 4.4% compared to 4.2% at end 2017. During the period, the Bank’s Net Fee and Commission income reported a significant YoY growth of 31.8%. After providing for impairment on financing and accounting for an increase in operating expenses of 8.2%, the Bank was able to record a significant 70.8% growth in operating profit before VAT on Financial Services and NBT to close the first half at Rs 620.8 million. Commenting on its first half performance, the Bank’s Chief Executive Officer Mohamed Azmeer said “It is encouraging to see the traction the Bank has achieved during the last six month, resulting in sustained profitability for the Bank. Having commenced reciprocating our shareholders with the inaugural dividend, we are confident that this performance will lead us to greater success in line with our 5 year strategic plan.”
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